data security and digital transformation – Corriere.it

Why is Tim’s network so important?
Tim’s telecommunications network is the most extensive in Italy: made up of over 21 million kilometers of fiber optic cables and covers 89% of homes. the main infrastructure for data transmission of citizens, businesses and public administration. considered strategy for national security ed it hub for digitization of the country, which passes through the introduction of digital applications essential for the future of Italian companies and for the modernization of services to citizens by the public administration envisaged by the recovery and resilience plan. Tim’s infrastructure also includes Sparkle’s international cables.

Who owns the infrastructure?
The first shareholder of the telephone group is the French media company Vivendi, which has a 23.75% stake, the second shareholder is Deposit and loan fund with 10%. The remaining capital is divided between foreign institutional investors, which own just over 44%, Italian institutional investors with around 3.5% and the market.

Why did Tim put it up for sale?
Last year, the Tim group launched a plan which provides for the separation of the fixed network from the services business through the contribution to two different companies: NetCo for the network and SerCo for commercial services. The plan aims to go beyond the integrated business model and thus allow the network to have its own life to benefit from regulatory advantages, while allowing commercial activities to be developed without constraints. The separation plan has created the conditions for the sale of the fixed network, through which the telephone group would raise cash to improve the balance sheet and reduce the debt which today amounts to over 20 billion euros. Thousands of employees would also be transferred to the NetCo, reducing costs for Tim.

How much is it worth?
There are Tim on the value of the network estimates ranging from 20 billion to 31 billion, indicated by the first shareholder Vivendi as a target in order to be able to say yes to the sale. The price includes all the assets of the network: from the backbone that crosses Italy, to the last mile that reaches homes up to Sparkle’s international cables.

What is the government’s interest?
The government has special powers, called Golden Power, which allow it to protect ownership structures and set conditions for strategic decisions relating to the grid. The government Meloni has decided to secure the infrastructure creating a national network, which would pass through the unbundling of the network from Tim and the assignment in public hands. A choice also dictated by the fear that the telephone group could be taken over by foreign investors. Risk that became concrete in 2021 when the Kkr fund came forward to launch a takeover bid and take control of Tim.

What does Cassa Depositi e Prestiti want to do?
Cassa Depositi e Prestiti, controlled by the Ministry of the Economy, was indicated as vehicle to implement the government plan for the national grid. CDP has 10% of Tim’s capital and in the past it had explored the possibility of buying the network more than once, but without reaching an agreement. The latest negotiation dates back to last year when Cdp signed a memorandum of understanding with Tim to explore an integration between the telephone group’s network with Open Fiber, the company controlled by the Cassa with the Australian fund Macquarie, which was entrusted with the Ultra-Broadband public project for the fiber optic network. After the failure of the negotiations there were attempts by the government to explore possible alternatives but while the discussions were underway, twenty days ago the American fund Kkr came forward surprisingly with a proposal to buy the network. With the offer approved yesterday, Cdp and Macquarie therefore respond to the incursion by Kkr to try to bring the infrastructure under the public hat. Looking ahead, there would be integration with Open Fiber to create a single national network.